Elon Musk wants to turn Tesla into a private company

8 August 2018

The fairy tale ended?

Today, Tesla is a public company: its shares are traded on the stock exchange, so anyone can buy its shares. However, the head "Tesla" Elon Musk (Elon Musk) stated that may transform it into a private company. Why would he do that?

Yesterday, Musk has posted a tweet like this: "Consider the withdrawal of Tesla stock exchange at $420 per share. Funding secured". After these words, the quotes of the company soared by 11 %, to $381 per share.

But why the Mask needed to turn the "Tesla" in a private company? Here's what the owner replied: "As a public company, we're subject to wild fluctuations in the stock price that can seriously distract all employees of Tesla, all of whom are shareholders".

The billionaire has noticed that financial statements come out quarterly that pushes the company to the quarterly earnings cycle. In this regard, the company sometimes couldn't concentrate on the longer term.

Also Elon Musk sent to all the shareholders of Tesla's letter, in which he proposed either to accept the change in status of the company, or to sell its shares at a price of $420 apiece.

It is noteworthy that the Musk is Tesla's largest shareholder: he owns 22 % of the securities of the company. And as after the jump of quotations of the company's market capitalization rose to $64,45 billion, Musk formally became richer by $1.4 billion. Only one tweet and one trading day has increased his fortune by more than a billion!

The stock is "Tesla" traded in the area of historical highs. However, the Musk recently announced more impressive growth. So, in January has information, according to which the entrepreneur wanted to establish himself zero salary but receive bonuses upon reaching certain capitalization Tesla levels: $100 billion, $150 billion, and so on up to $650 billion. Apparently, now the head of the company completely changed their views.